EMPLOYEE CLASSIFICATION-IMPACT ON HEALTHCARE REFORM

An Employer Benefit News article on April 3, 2014 highlighted what they called the “health care reform land mine” in regards to Northwestern University’s student athletes being ruled employees for the purposes of the National Labor Relations Act.

Determining what types of individuals are considered employees and how to determine their service hours for full-time determination and benefits eligibility is a critical component of healthcare reform compliance and the penalties that could be incurred.

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In the hypothetical scenario they present regarding Northwestern University’s situation, if enough students and independent contracts are classified as full-time employees the university could very well miss providing healthcare to substantially all (95%) of them. The result of just one employee receiving subsidized coverage from an Exchange in the article’s example, the university could be penalized approximately $20 million per year.

That is a powerful example of the impact employee classification can have on an employer. Did the final regulations change how you should classify your employees for healthcare eligibility?